Big Banks Just Flunked Their Own Test on Climate, Indigenous Rights

The current round of soul-searching around the Equator Principles dates back to the Dakota Access Pipeline (DAPL) and the Indigenous-led campaign calling out the banks behind the project. (Photo:Joe Brusky/flickr/cc)

The current round of soul-searching around the Equator Principles dates back to the Dakota Access Pipeline (DAPL) and the Indigenous-led campaign calling out the banks behind the project. DAPL was a crisis for those banks, and it was a scandal for the Equator Principles Association. How did such an obviously flawed project pass muster?

In response to activist pressure, in 2017, the Equator Principles Association agreed to a revision process, including examining how the principles deal with the internationally accepted standard that projects cannot be built unless directly impacted Indigenous communities give their free, prior and informed consent. The Equator Principles currently ignore these principles in rich countries like the US — and ignore climate impacts everywhere.

Of course, all this comes on the heels of the historic report recently released by the Intergovernmental Panel on Climate Change that describes food shortages, growing wildfires and massive coral reef destruction by 2040 unless we take immediate action to curb greenhouse gas emissions.

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We urgently need to stop expanding and start phasing out fossil fuels to have any chance of meeting the goals of the Paris climate agreement. Flying in the face of these facts, the Line 3 pipeline would increase extraction and burning of tar sands, one of the dirtiest forms of oil. Enbridge is a company going in exactly the wrong direction: Last year, it even sold off a huge wind farmto free up capital to build Line 3.

Because Enbridge is funding Line 3 from its general corporate coffers, the pipeline illustrates another fundamental shortcoming of the Equator Principles: Since the standards only cover direct finance for projects, Line 3 is outside of their scope, despite the project’s clear impacts on Indigenous rights and the climate. This is a litmus test for the current revision of the Equator Principles, which should cover projects like Line 3 if they’re going to be worth anything. As a start for companies sponsoring harmful projects, the Equator Principles evaluation should be triggered when these companies are up for credit renewals as well.

But JPMorgan Chase, Wells Fargo and Crédit Agricole can’t hide behind the revision of the Equator Principles. They should immediately end their support for Line 3 by dropping their financing for Enbridge, so long as the company is pushing forward this destructive project. The December credit renewal will serve as another test. This time they should make sure they pass it

Lindsey Allen is executive director of Rainforest Action Network, which preserves forests, protects the climate and upholds human rights by challenging corporate power and systemic injustice.

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Further

Prepping for Saturday's protests in D.C., Mayor Muriel Bowser went for the grand gesture - and a symbolic middle finger to the racist cowering in the White House - and had "Black Lives Matter" painted in yuge yellow letters on the city's main drag. Bowser's action, aimed at recognizing the thousands in the streets "craving to be heard and to be seen," was criticized by some activists as "performative distraction," but many celebrated it as a vital tribute: "We are saying it loud. We are here."

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